International Journal of Management and Entrepreneurship

(IJME) Vol. 2, No. 1, COOU 2020

139

REWARD MANAGEMENT AND EMPLOYEE PERFORMANCE IN

SELECTED MANUFACTURING FIRMS IN ENUGU STATE

1Okeke Fredrick Ejikeme

2Ugwu Jude Ifedioranma

3Nebeife, Dennis Onyemaechi

and 4Ngige Chigbo Donatus, Ph.D

1Department of Crop Science and Horticulture, Nnamdi Azikiwe University Awka,

Anambra State, Nigeria 2Human Resources Planning and Budgeting Unit, Projects Development Institute (PRODA), Enugu 3Department of Business Administration & Management, Institute of Management & Technology

Enugu, Nigeria 4Professor of Business Administration, Chukwuemeka Odumegwu Ojukwu University, Nigeria. E-

mail: donachigbongige@gmail.com

Abstract The research focused on reward management and employee performance in selected

manufacturing firms in Enugu State. This study aimed at identify the extent to which extrinsic

reward affects employee performance in the organization, as well as to ascertain the extent

intrinsic reward affects employee performance in the organization. The data collected from

respondents through questionnaire were analyzed with tabular presentation and percentage. The

population of the study was 2821 people while the sample size of 350 was obtained using Taro

Yamane formular and Mario Boley sampling technique and special package for social science

(SSPS) statistical and T-Test normal distribution tools were used to analysed the data. The major

finding revealed that extrinsic reward aimed at maintaining and motivating employee

performance in the organization. It was also found out that constant payment of monthly salary

enhance employee performance in the organization, it was also found out that fringe benefits,

money, promotions attracts and retain suitable employees in the organization and it was found

out that employee who are intrinsically rewarded tends to work at high level of productivity and

strive to develop professionally. Therefore extrinsic reward system have a significant positive

effect on employee performance in the organization and also intrinsic reward have a significant

positive effect on employee performance in the organization. In conclusion, from the data

analysed it was established that extrinsic reward aids in motivating, maintaining, attract and

retain skilled employee in their organization. Also that constant payment of monthly salary

enhance employee performance in the organization. Moreso, fringe benefits, money, promotions

attracts and retain suitable employees in the organization. Intrinsically rewarded employee

works at high level of productivity and strive to develop professionally and a well managed non-

financial reward stimulates employee performance towards top performance in the organization.

Organizations should manage their reward system effectively in order to reduce employee

turnover in the workplace. The major recommendation for high performance from the employee,

the organization should pay their employee as an when due and also provide adequate equipment

and provide good physical working conditions in the workplace. The organization should provide

crèche facilities for nursing mothers who are employees of the organization to enable them

concentrate in their duties in the organization and also the organization should provide soft loan

facility to their employee in order to lessen the economic hardship of their employees.

Keyword: Reward management, extrinsic reward, intrinsic reward, and membership based

reward and employee performance.

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Introduction

Organizations are in global competition to retain their market share in the market, and use

effective rewards system to attract, retain and motivate their employees. It was believe that

reward is one of the important tools used by the organization to attract, retain and motivate its

employee. Any reward system that fails to motivate employees is considered to be an

ineffective reward system. Employees need money for their daily needs and that is why they

subject themselves to work in order for organization to reward or compensate them at the end

of the month. Any organization that does not have the interest of its workers welfare is said to

be working towards failure.

Organizations use different types of rewards to motivate their employees for desired

performance in order to achieve organizational objectives. These types of rewards are

extrinsic and intrinsic reward, financial and non-financial reward, performance based reward

as well as member-based reward.

In This global age, every organization needs to have competent and motivated employees, as

to gain wider market coverage therefore it is important for organizations to find out what

motivates their employees so that employees can give their best to the organization.

(Onuegbu & Ngige 2018).

Human resource managers seek to design reward system that facilitate achieving the

organization strategic goals and meet the goals of individual employees (Bratton & Gold

1999).

Asaju & Yarie (2017) in their study on assessment of the extrinsic rewards on intrinsic

motivation and performance of senior non-teaching staff of federal college of education Zaria

(2005-2010) positively support this study. The authors contend that finance related rewards

constitute the most important or vital motivator among the staff. The study also validates the

fact that financial rewards still dominate motivation among employees in Nigeria and many

other developing countries. Olori & Edem (2017) also investigated intrinsic reward strategies

and employee performance in Nigeria‘s Microfinance Industry. It was found that the non-

monetary rewards or intrinsic rewards employees receive in microfinance banks influence

their performance through quality output and effective customer service. The study also

indicated that intrinsic rewards should be a key strategy in motivating employees.

Transif (2012) studies relationship between intrinsic rewards and job satisfaction. A

comparative study of public and private organization. The research focused on employing the

relationship between intrmsie regards and job satisfaction for employees of service sector.

The work examined the level of employee‘s job satisfaction for intrinsic rewards such as task

autonomy, task significance, task involvement opportunities to learn new things and

recognition of public & private banking sector employees. The findings indicated that the

intrinsic rewards such as task autonomy, task significance, task involvement, opportunities to

learn new things and recognition are important antecedence to job satisfaction for the

employees of service sector organization.

Moreso, bari, Arif and Shoaib (2013) investigated impact of non-financial rewards on

employee attitude and performance in the workplace. A case study of business institutes of

Karachi. The study aimed at finding the impact of non-financial reward on employee attitude

and to get information about the factors which affect their performance at workplace. The

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findings showed that feedback to employees, freedom, career development plan and valuation

of employees learning programmes, open and comfortable work environment and good

supervisory relations, all these factors positively impact employees attitude and performance

in the work place. The study is of the view that adequate reward by organization enhanced

employee performance.

Lotta (2012) states that financial incentives are indeed very effective in

motivating employees. Gunu (2005) maintains that employee reward can

either be financial or non-financial; or both. What is important is that an

employee is adequately compensated for his efforts and such practice

actually induces him for greater performance. Moreso, reward that motivate

employees may not be the same for everybody.

Schuler (1998) Employee Performance (what an employee does or does not do) influences an

organizational productivity and its competiveness. Fortunately, what employee do can be

measured and evaluated, particularly their job performance and absenteeism. Job

performance describes how well an employee performs his or her Job, while absenteeism

refers to whether the employee is there to do the work. Performance can be measured by

employee‘s job-related: (1) Output for example, the number of shelves stocked by the shelf

stockers at the grand union grocery stores, or the number of welding machines assembled by

Lincoln electric workers (2) behavior in terms of working together co-operatively in teams

(3) attitudes eg the willingness on the part of the workers at general electric (GE) to the

flexible and adaptable or the friendliness.

It is on this ground that this study investigates the relationship between

reward management and employee performance in the manufacturing firms in

Enugu State.

1.2 Statement of the Problem Reward encompasses pay, remuneration and compensation, therefore reward

strategy should be devised and developed to meet organizational and employee

needs (Pilbeam and Corbridge, 2002). Some organizations mismanage their

reward system thereby resulting to so many problems that lead to poor

productivity and employee performance.

There are frequent employee turnover in organizations due to poor

remuneration by employers, thereby resulting to loss of skilled workers. These

dissatisfied employees seek for enhanced pay in other organizations.

Irregular payment of workers‘ salaries leads to demotivation of employees,

this leads to poor employee performance in the organization. Bad and harsh

economic condition in Nigeria makes it difficult for some organizations to

adequately remunerate their employees.

Most organizations in Nigeria do not follow employment legislation, disregard

labour laws and edicts as a yard stick for rewarding their employees. These

affected employees work in a state of acrimony. Moreover, due to high level of

unemployment in Nigeria, employees are compelled to take whatever is offered to them

by their employers.

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Many researchers have researched on reward management but they have not worked on these

manufacturing firms under study. Therefore the researcher decided to study reward

management and employee performance with a view to find out how these firms reward their

employees for high performance.

1.3 Objectives of the Study The broad objective of the study is to ascertain the effect of reward

management on employee performance in selected manufacturing firms in

Enugu State. The specific objectives are to:

1. identify the extent to which extrinsic reward affects employee

performance in the organizations understudy.

2. ascertain the extent to which intrinsic reward affects employee

performance in the organizations understudy.

Hypotheses 1. Ho: Extrinsic reward system have no significant positive effect on

employee performance.

2. Ho: Intrinsic reward system have no significant positive effect

on employee performance.

Significance of the Study

The study will help the business owners to learn how to reward their employees

effectively, thereby motivating them to put their best performance for the

progress of their organization.

The study will serve as a literature for further studies for students and

researchers.

Also, it will educate the general public on the benefits of equitable reward

management.

It will help the government to compel organization to comply with employment

legislations.

Scope of the Study

The scope of the study is on reward and employee performance as it affects the

selected manufacturing firms, in Enugu State Nigeria, at 2019 which involved;

Aqua Raffa Coy Enugu, Innoson Nig. Ltd, Hardis & Dlomedas, AC Drugs,

Herbertex Nig. Ltd, Nigeria Breweries, Coca Coal Bottling Coy, and Juhel

Pharmaceutical Nig. Ltd.

Unit Scope will be- The study centered on CEO‘s and employees of the

selected manufacturing firms, in Enugu State.

Review of Related Literature

Conceptual Framework: Reward Management

Mathis & Jackson (2004) states that rewards can be both intrinsic and

extrinsic. Intrinsic rewards often include praise for completing a project or --

meeting performance, objectives. Other psychological and social effects of

compensation reflect the intrinsic type of rewards. Extrinsic rewards are

tangible and take both monetary and non-monetary forms. Tangible

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components of a compensation program are of two general types. With direct

compensation the employer exchanges monetary rewards for work well done.

Employers provide indirect compensation like health insurance to everyone

simply based on membership of the organization. Base pay and variable

pay the most common formal of direct compensation. Indirect

compensation commonly consists of employee benefits.

Base pay

The basic compensation that an employee receives, usually as a wage or

salary is called base pay. Many organizations use two base pay categories,

hourly and salaried, which are identified according to the way pay is

distributed and the nature of the jobs. Hourly pay is the most common

means of payment directly calculated on the amount of time worked. In

contrast, people paid salaries receive consistent payments each period

regardless of the number of hours worked.

Benefits Many organizations provide numerous extrinsic rewards on an indirect

manner. With indirect compensation, employees receive the tangible

value of the rewards without receiving actual cash. A benefit is an indirect

reward - health insurance, vacation pay, or retirement pensions - given

to an employee or group of employees as a part of organizational

membership, regardless of performance.

La Belle (2005) in Ibrar & Khan (2015) is of the view that different employees have different

needs about rewards. Some employees consider that cash is sufficient to fulfill their needs

and some others wants material – incentive…like car, house and prefer holidays and some

prefer non-material incentives. Public sector employees much prefer extrinsic factors than

intrinsic factors such as pay as more important that private sector employees (Maidani 1991).

These two basic rewards (financial and non-financial) can be utilized positively to increase

the performance of employees. Financial reward mostly consists of pay for performance such

as job promotion, bonus, commission, gifts and so on and non-financial rewards mostly

consist on social recognition, appreciation, and work responsibility. (Luthans 2000) in Ibrar

& Khan (2015).

The importance of reward management is heightened by its important role in enhancing

employee performance. As a result a special area of concern for human resource managers

has been the reward management and with special emphasis to its effect on employee

performance (Baptiste 2008). Efforts have therefore been made by human resources

management theorists to try to establish the relationship between reward management and

employee performance in various sectors of the economy. Expectation are built into the

employment relationship, the starting point of which from the reward point of view, is an

undertaking by an employee to provide effort and skill to the employer, in return for which

the employer provides the employee with a salary or a wage, this then raises the performance

of the employee whose expectations would have been met (Armstrong & Taylor 2014).

Compensation and Employee Performance Ivancevich & Glueck (1989) contends that high performance requires much

more than employee motivation. Employee ability, adequate equipment, good

physical working conditions, effective leadership and management,

employee health and other conditions all help raise employee performance

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levels. But employee motivation to work harder and better is obviously an

important factor. And most compensation experts believe that if pay is tied

to performance, the employee produces a higher quality and quantity of

work.

Not everyone agrees with this, some researchers argue that if you tie pay to

performance you will destroy the intrinsic rewards a person gets from doing

the job well. These are powerful motivators too. But the research behind

these concerns has been limited to only a few studies. The importance of

money to employees varies among individuals. And if the organization claims

to have an incentive pay system and in fact pays for seniority, the motivation

effects of pay will be lost.

Some theories disagree over whether pay is a useful mechanism to motivate and satisfy

employees. Because of individual differences in employees and jobs, it seems more fruitful to

redirect this research to examine

1. The range of behaviours that pay can affect positively or negatively.

2. The amount of change pay can influence.

3. The kind of employees that pay influences positively and negatively.

4. The environmental conditions that are present when pay leads to positive and negative

results

The point is that, although compensation in the form of pay for performance has interactive

appeal, it is extremely difficult to perfectly fit a pay for performance system together.

Developing a system that employees consider as showing that pay is tied to performance

requires a number of managerial skills. First, managers must be able to allocate pay on the

basis of merit. Any merit pay increase must be meaningful, not a token, if it is to be

motivational.

Second, managers must be willing to specifically discriminate among subordinates, in terms

of rating and rewarding performance. Third, the pay system must be communicated at the

time of employment in terms of initial pay, expected long-term progression, and adjustments.

This information should be communicated by the manager, who informs the employee as

well what performance levels are required to obtain the pay increases. Finally, managers must

have the ability to discuss the pay for performance linkage with subordinates.

One reason that organization have failed to the pay and performance for their employees is

that it requires quite a bit of work, effort and commitment by management. A more simplified

strategy is to conduct business as usual or to not work on creating a pay for performance

perception among subordinates. The first step in the direction of creating pay for performance

work culture is to develop performance evaluation systems that are considered equitable

meaningful and comprehensive by managers and employees.

Organizations now are facing employee retention challenges. The various forms of behaviour

and attitude disposition which organizations require of its employees in order to achieve set

goals depends on the kind of rewards and incentive package the organization is willing to

offer. Sometimes, rewards are not simply expressed in the monetary form, but it also includes

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those difficult to measure in monetary currencies. There are various elements of these

intrinsic rewards available in organization which increases satisfaction and overall job

productivity of employees like job involvement, participation in decision making task

significance and recognition (Onuegbu & Ngige 2018).

Reward is one of the important tools for organization to motivate its employees at workplace

or in the organization. In this global age, every organization needs to have competent and

motivated employee, so that organization can sustain in the market or in the business

therefore it is important for organization to find out what motivates its employees so that

employees can give their best to the organization. (Onuegbu & Ngige 2018).

Human resource managers seek to design reward system that facilitate achieving the

organization strategic goals and meet the goals of individual employees. (Bratton & Gold

[1999).

All workers, including volunteers who donate their time to worthy causes expect to be

rewarded in some way for their contributions.

Reward may be defined broadly as the material and psychological payoffs for doing

something. These payoffs can have an immense impact on how long and hard someone

works. A person who is please with the consequences of work is likely to put forth more

effect than someone who feels short changed or cheated in some way.

Managers have found that job performance and satisfaction can be improved by properly

administered rewards. Today, rewards vary greatly in both type and scope depending on ones

employer and geographical location.

A prime objective of effective people resourcing is to have the right people, in the right place,

at the right time, doing the right thing. This cannot easily be achieved without the right and

reward strategies for the organization. Pilbcam and Corbridge (2002). Reward encompasses

pay, remuneration and compensation. It represents a portfolio of managerial practices where

financial and non-financial elements are flexibly directed at enabling and rewarding

employees who add value in the interests of competitive advantage. Reward is used as an

holistic term to reflect a more dynamic and a more flexible approach.

Reward strategy should be devised and developed to meet organizational and employee needs

(Pilbeam & Corbridge 2002). Robbins S.P (1982) is of the view that organization, then use

rewards to motivate people. They rely on rewards to motivate job candidates to join the

organization. They certainly rely on rewards to get employees to come to work and perform

effectively once they are hired.

Bratton J. & Gold J. (1991) contends that reward refers to all forms of financial returns and

tangible services and benefits employees receive as part of an employment relationship.

Reward is the centre piece of the employment relationship.

The objectives of a compensation system is to create a system of rewards that is equitable to

the employer and employee alike, so that the employee is attracted to the work and motivated

to do a good job for the employer. (Ivancevich, Glueck 1989).

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Employee performance

Schuler (1998) Employee Performance (what an employee does or does not do) influences an

organizational productivity and its competiveness. Fortunately, what employee do can be

measured and evaluated, particularly their job performance and absenteeism. Job

performance describes how well an employee performs his or her Job, while absenteeism

refers to whether the employee is there to do the work. Performance can be measured by

employee‘s job-related: (1) Output for example, the number of shelves stocked by the shelf

stockers at the grand union grocery stores, or the number of welding machines assembled by

Lincoln electric workers (2) behavior in terms of working together co-operatively in teams

(3) attitudes eg the willingness on the part of the workers at general electric (GE) to the

flexible and adaptable or the friendliness.

The impact that job performance and absenteeism can have on productivity and the

competitive strategy of an organization is now widely recognized. Major quality

improvement and quality of work life programs at many large corporations such as Chrysler,

general electric etc have aimed at increasing productivity and achieving improved quality

through reducing absenteeism and improve employee performance.

Employee performance is the quality that can be measured by percentage of work output,

customer satisfaction that can be measured by the number of loyal customers and customer

feedback. Also, timeliness, measured in terms of how fast work is performed by the

employee when given a certain task, absenteeism or tardiness observed when employee

absent themselves from work and achievement of objectives measured when an employee has

surpassed their set targets, they are then considered to have performed well to achieve

objectives (Hakala 2008: Armstrong 2010).

Performance is measured in terms of some output produced such as the quality or quantity of

job, job design and others. Job performance should be considered as a significant in order to

achieve the organizational objectives (Gerhart & Milkovich 2002). Performance is measured

through performance indicators that many include achievement of targets, timeliness among

others. It can be seen that employees individuals performance has an impact on the

organization wider objectives and it is thus imperative that every employees performance

should be managed. This process of performance includes group assessment and peer reviews

as well as written reports (Hellriegel et al 2004). In recent years performance management

systems have become more important because managers are under constant pressure to

improve the performance of their organization (Holloway, Francis & Hinton 1999).

Theoretical Framework

This work is anchored on Maslow‘s Hierarchy of Needs (Robbins (1982). The choice of

Maslow‘s Hierarchy of Needs theory is that it takes into consideration employee motivation

in order to induce better performance in the workplace. He hypothesized that within every

human being there exists a hierarchy of five needs. These needs are (a) physiological:

includes hunger, thirst, shelter, sex, and other bodily needs.

2. Safety: Includes security and protection from physical and emotional harms.

3. Love include affection belongingness; acceptance and friendship

4. Esteem: Includes internal esteem factors such as self-respect autonomy and

achievement and external esteem factors such as status, recognition and attention.

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5. Self-actualization: The drive to become what one is capable of becoming: includes

growth, achieving one‘s potential‘ self-fulfillment. As each of these needs becomes

substantially satisfies, the next needs becomes dominant from the stand point of

motivation, the theory would say that although no need is ever fully gratified a

substantially satisfied need no longer motivates.

Maslow separated five needs into higher and lower levels. Physiological and safety needs

were described as lower-order needs; and love esteem and self-actualization as higher-order

needs.

The differentiation between the two orders was made on the premise that higher-order needs

are satisfied internally, whereas lower-order needs are predominantly satisfied eternally by

such things as money, wages, union contracts, tenure and pleasant working conditions.

Maslow‘s hierarchy of needs theory has received much recognition particularly among

practicing managers.

Empirical Review

Eze (2012) investigated the role of reward management in organizational performance. A

study of university of Nigeria, Nsukka. The study examined the role of reward management

in enhancing organizational performance of university of Nigeria Nsukka. The specific

objectives of the study are to examine the relationship between monetary reward and

employees performance in an organization and to examine the relationship between non-

monetary reward and employee's performance in an organization. The study was conducted

in Nigeria. The study used survey research method of which questionnaire were administered

to the sample drawn from the population of the study. The data collected were analysed with

chi-square (X2) and the findings reveals that there is a significant relationship between

monetary rewards and employee performance among university of Nigeria Nsukka staff and

there is a significant relationship between non-monetary rewards and employee performance

among staff in university of Nigeria Nsukka.

Mba, Mgbemena & Ejike (2015), investigated effective reward management and employee

performance in civil service: A study of Anambra State civil service. The study examined the

impact of effective reward system as a tool for employee performance in civil service using

Anambra State as a case study. As specific objectives the study examined the relationship

between employee performance and pay reward, employee recognition, conducive work

environment and staff development. The study was done in Nigeria using survey design and

questionnaire to collect the data and Pearson correlation coefficient and multiple regression

analysis statistical tool was used to analysed the study. The population of the study was 1481

senior civil servants identified through the nominal roll of various ministries. The study found

that pay reward and some non-financial rewards of employee recognition, conducive work

environment and staff development are positively and significantly related to employee

performance in civil service.

Mandong (2017) investigated rewards and employees job satisfaction of selected out sourced

service providers in Jos, Plateau States Nigeria. The main objective of the study is to examine

the relationship between rewards and employees job satisfaction of selected outsourced

service providers in Jos. The study was conducted in Nigeria and a survey research design

was adopted and the population of the study was 541 employees of 5 selected out sourced

service provider in Jos. Questionnaire was used for data collection while simple regression

analysis and Pearson product moment correlation test were used to analyzed the data. The

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finding revealed that pay (R2 = 0.665, P < 0.005), fringe benefits (r = 0.747, P < 0.05)

Recognition (R2 = 0.558, P < 0.05) Promotion (R2 = 0.683, P < 0.05) and Job security (R2 =

0.711, P < 0.05) have positive significant effect on employees job satisfaction of selected

outsourced service providers in Jos, Plateau State.

(4) Ezigbo & Court (Retrieved on 10/4/19) studied the effect of monetary and non-monetary

rewards on the employees performance in manufacturing firms in River State, Nigeria. The

study investigated the motivational implications of monetary and non-monetary rewards in

the performance of manufacturing organizations in River State, Nigeria. The study was done

in Nigeria and was conducted using cross sectional design. The population of the study was

1417 employees from Nigeria Engineering works (New) PLC. A sample of 312 respondents

was drawn through proportionate strategified sampling, questionnaire was used for data

collection and the data was analyzed with chi-square statistical tool. The study found that

monetary and non-monetary reward had significant positive effect on employee performance.

5) Oyira, Ella, Nkamare, Lukpata, Uwa & Mbum (2015) (Retrieved on 20/4/19)

investigated the effect of reward system among health care workers performance: A

case study of university of Calabar teaching hospital Calabar, Nigeria. The objective

of the study are to determine the relationship between monetary reward and the health

care workers performance and to determine the relationship between non-monetary

reward and health care workers performance. The study was conducted in Nigeria.

The population of the study was 277 workers of UCTH. The study adopted a mix-

method approach, questionnaire and chi-square statistical tool. The finding revealed

that monetary reward had a positive impact on employees performance and also that

monetary rewards are tools of growth and development in an organization.

6) Nnaji-Ihedinmah & Egbunike (2015), studied the Effect of Rewards on

Employee Performance in organizations. A study of selected Commercial Banks in

Awka Metropolis. The main objective of the study is to determine whether a

relationship exists between rewards system and employee performance. The study

was conducted in Nigeria and the population of the study was 95 (ninety-five)

employees from eight banks located in Awka. The researchers used questionnaire,

regression technique and two way Anova to analyzed the study. The findings

indicated the presence of a relationship between rewards and employee performance

and that there is a significant difference on the effects of intrinsic and extrinsic

rewards on employee performance.

Methodology

The researcher used a survey research method to carry out the research because survey

research isolates individuals, groups of individuals, institutions or community for study. Also

case study employs a variety of data gathering techniques such as questionnaire, observation

and interview etc. it is also useful in providing relevant background information.

The main research instrument to be used for this research is the questionnaire copies of which

will be administered to the members of the organization. Moreso to the use of the above

methods, observation techniques will equally be used in order to ascertain the practical

existence of facts that will be gathered through the questionnaire.

Area of Study

The study was conducted at selected manufacturing firms in Enugu State Nigeria

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Population of the Study Population is the finite or infinite collection of objects under study. The expected population

size (N) is 2821.

Sample Size and Sampling Technique A sample is defined as a group of objects selected from a population for study for the

purpose of making generalization about the population from which the sample has been

drawn.

The sample size was derived using Taro Yamane formula below.

n =

Where n = Sample

N = Population

e = Margin of error

Therefore to derive n

N = 2821

E = 5% (assumed)

N = 2821

1 + 2821 (0.05)2 = n = 2821

1 + 2821 (0.005)

N = 2821 n = 2821

1 + 7.05 8.05 = 350.43 = n = 350

N = 350

Method of Data Collection

The Data was collected with questionnaire and observation. 350 copies of questionnaire will

be distribute to the respondents.

Validation Test of instrument Validity is the ability of a measurement instrument to measure what it was supposed to

measure and is therefore concerned with the quality of the research

Reliability Test of instrument

Reliability test was carried out on the instrument. Test retest method will be used by the

researcher to determine the reliability of the instrument.

Data Presentation and Analysis

4.2 Test of Hypotheses

T-test normal distribution was used to measure the strength of the association between the

variables used.

The t-test statistic were used to determine/testing the significance of an observed correlation

coefficient. The correlation coefficient only shows the degree of relationship between

variables;

t = rn-2

1-r2

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Where

n = sample size

r = the coefficient of correlation

n-2 = degree of freedom Test of Hypothesis One

Statement of Hypothesis One

Statement of Hypothesis One

Ho: Extrinsic reward system has no significant positive effect on employee performance

Table 4.6: Item statistics

Item statistics N

Minimu

m

Maximu

m Sum Mean

Std.

Deviation

4.6.1 289 1.00 5.00

1296.0

0

4.484

4 1.03108

4.6.2 289 1.00 5.00

1192.0

0

4.124

6 1.46666

4.6.3 289 1.00 5.00

1303.0

0

4.508

7 1.16701

4.6.4 289 1.00 5.00

1352.0

0

4.678

2 .78853

4.6.5 289 1.00 5.00

1236.0

0

4.276

8 .95353

4.6.6 289 1.00 5.00

1158.0

0

4.006

9 1.13955

Valid N (listwise) 289

Source: Field Survey 2019; SPSS 16.0 Output

Table 4.11: One-Sample Test for Extrinsic reward system and employee performance

Test Value = 0

T Df

Sig. (2-

tailed)

Mean

Difference

95% Confidence Interval of

the Difference

Lower Upper

Promotions from

my employer

motivates me as

well as enhance my

performance in the

organization

36.277 286 .000 2.15462 2.0379 2.2713

Source: SPSS 23.0 Output

Decision Rule

Interpret the results. Compare the P-value to the significance level stated earlier. If it is less

than α, reject the null hypothesis. If the result is greater than α, fail to reject the null

hypothesis. If you reject the null hypothesis, this implies that your alternative hypothesis is

correct, and that the data is significant. If you fail to reject the null hypothesis, this implies

that there is no significant difference between the sample data and the given data.

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Result

The result on Table 4.11 shows the influence of Extrinsic reward system on employee

performance (t = 36.277; df = 286; P < 0.05). The respondents have higher agreement on the

items on the influence of Extrinsic reward system on employee performance.

Decision

Extrinsic reward system have a significant positive effect on employee performance

Test of Hypothesis Two

Statement of Hypothesis Two

Ho: Intrinsic reward system has no significant positive effect on employee performance

Table4.7: The extent intrinsic reward impact on employee performance in the

organization

S/N Item statistics N Minimum Maximum Sum Mean Std. Deviation

1 4.7.1 289 1.00 5.00 1156.00 4.0000 1.09291

2 4.7.2 289 1.00 5.00 915.00 3.1661 1.27479

3 4.7.3 289 1.00 5.00 1126.00 3.8962 1.28410

4 4.7.4 289 1.00 5.00 1127.00 3.8997 1.48615

5 4.7.5 289 1.00 5.00 1126.00 3.8962 1.19444

6 4.7.6 289 1.00 5.00 1119.00 3.8720 1.41208

Valid N (listwise) 289

Source: Field Survey 2019; SPSS 16.0 Output

Test of Hypothesis Two

Statement of Hypothesis Two

Ho: Intrinsic reward system have no significant positive effect on employee performance

Table 4.12: One-Sample Test for the influence of Intrinsic reward system and

employee performance

Test Value = 0

t df

Sig. (2-

tailed)

Mean

Difference

95% Confidence Interval of

the Difference

Lower Upper

Having self-

actualization as a

result of working

in my organization

enhance my

performance in the

workplace

34.889 286 .000 2.27912 2.1508 2.4075

Source: SPSS 23.0 Output

Result

The result on Table 4.12 shows the influence of Intrinsic reward system on employee

performance (t = 34.889; df = 286; P < 0.05). The respondents have higher agreement on the

items on the influence ofintrinsic reward system on employee performance. The null

hypothesis is therefore rejected.

152

Decision

The statistical significance indicates that Intrinsic reward system have a significant positive

effect on employee performance

Discussion of Results

In objective 1, as well as its research question and hypothesis, that is to identify the extent to

which extrinsic reward affects employee performance in the organization. It was found that

extrinsic reward system have a significant positive effect on employee performance. It was

observed that organization use rewards to motivate employee. They rely on rewards to

motivate job candidates to join the organization. It was observed from the views of

respondents that extrinsic rewards are tangible and take both monetary and non-monetary

forms.

It was also observed that organization promotions and increase the salaries of their employees

in order to motivates them for top performance. This idea is in line with the principle

objective of reward management to maintain or improve levels of employee performance.

Employees seek rewards that will satisfy their individual needs.

In objective 2, as well as its research question and hypothesis, that is to ascertain the extent to

which intrinsic reward affects employee performance in the organization. It was found that

intrinsic reward have a significant positive effect on employee performance It was observed

that intrinsic reward is internal to the person in that it is something that you have to offer

yourself and is driven by personnel interest or employment in the work. It was observed that

having or attaining self-actualization as a result of working in an organization enhance the

employee performance in an organization. It makes an employee to be devouted as well as

working for general good of the organization.

Summary of Findings

The researcher in line with objective 1 of study found that extrinsic reward aimed at

maintaining and motivating employee performance in the organization. It was also found that

constant payment of monthly salary enhance employee performance in the organization. It

was also found that fringe benefits, money, promotions attracts and retain suitable employees

in the organization.

In relation to objective 2 it was found out that having self-actualization as a result of working

in an organization enhance the employee performance in an organization because intrinsic

reward is internal to the person in that it is something that you have to offer your self.

It was found that employee who are intrinsically rewarded tends to work at high level of

productivity and strive to develop professionally.

Conclusion

From the data analyzed, it has been established that organization use extrinsic reward to

motivate, attract and retain skilled employee in their organization.

More so, intrinsic reward is internal to the person in that it is something that you have to offer

yourself and is driven by personal interest. Therefore having self-actualization as a result of

working in an organization enhance the employee performance in the workplace.

The use of membership-base reward as a motivational tool makes administration of reward

equitable in the organization. It was agreed that fringe benefit motivates the employee for top

performance in the organization.

153

Recommendations

Based on the outcome of this research the following recommendation were made

1. For high performance from the employee, the organization should pay their employee

as an when due and also provide adequate equipment, good physical working

conditions in the work place.

2. In line with non-financial reward the organization should provide crèche facilities for

nursing mothers who are employees of the organization to enable them concentrate in

their official duties in the organization.

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